Dance music festivals and clubs lose 78% of value
Prevented from opening by Covid-19 restrictions, nightclubs and dance music festivals lost more than three quarters of their value in 2020, according to new data from the International Music Summit (IMS).
Using data from Viberate and Reisdent Advisor, the IMS Business Report 2021, a copy of which can be requested by clicking here, calculated that €3.4 billion, or 78%, was wiped off the value of venues and festivals last year, as more than 200 electronic music festivals were forced to cancel.
Compounding the damage was a late, scaled-back 2020 season in Ibiza, while searches for flights for 2021 have yet to take off amid ongoing uncertainty, according to the report. IMS’s own flagship event, IMS Ibiza, was among the summer 2020 casualties.
“A huge rebound can be expected as the live industry finds safe routes to reopening”
However, “a huge rebound can be expected as the live industry finds safe routes to reopening”, it continues, while the demand for live dance music events events is bigger than ever: the value of festival tickets sold in March 2021 was more than the whole of 2020 combined, an increase of 4,000% year on year.
The decline in the value mirrors that of the live music industry more broadly, which analysts have put at 75% (Goldman Sachs) and 64% (PwC).
In total (including recorded music and DJ software/hardware), the global electronic music market declined 54%, to $3.4bn, the IMS Business Report estimates.
Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.